#9 Cross-sell, Up-sell and Down-sell strategies
One of the easiest ways to increase your customer base is to convert a single customer into “multiple” customers. Ask yourself if you would rather try to drum up new customers by cold calling or simply increase the number and dollar amount of transactions from clients who already know, like and trust you and your company. It is often just as lucrative, and less expensive, to cross-sell, up-sell, and down-sell to your current customer base. So how do you maximize those opportunities?
“I didn’t realize that you did that.”
If you have ever heard this from a client that just purchased something that you offer from one of your competitors, then you know how painful it is. If you haven’t, then take a moment to imagine it. It is excruciating! You have spent time, energy and money to acquire this client and keep them happy, but due to a lack of communication, they have just made a purchase from someone else, taking potential revenue away from you. How could this happen?
The fact is that only a fraction of your clients know everything that it you offer, so you need to make sure that you show them, tell them and remind them regularly! Build it into your sales and customer relationship systems by:
- Being intentional and thorough during your discovery process to touch on ancillary needs that they might not be addressing right away but may need in the future
o “Once, we’ve taken care of X, it may make sense to explore Y so we’re prepared if that situation arises”
- Create check lists for different problems that your company solves and how you can address them with different products or services
o A hardware store for example could have “Everything you need for perfect paint job” checklist with everything they need
and what aisle to find it in
o A moving company: “10 things you need to have to be prepared for your move”
- Distribute a newsletter regularly to highlight new and different products and offerings that your company is releasing
You can be creative with this, but make sure you are thorough and consistent so you don’t miss out on low-hanging fruit!
“Do you want fries with that?”
The classic upsell, but how often do you actually get those types of questions? What you usually hear is “Anything else?” or “Is that all?”.
How often in a sales situation do you find yourself so eager to get pen to paper that as soon as you get a “yes”, you rush through to get someone signed as a client at whatever they are willing to pay for?
In sales there is always the temptation to be an “order taker” because it is the path of least resistance. If someone wants to write you a check, the last thing in the world you want to do is say, “well, let’s just wait a minute and think about this here…”. Absolutely not. You put your blood, sweat and tears into getting this person to meet with you, and now that you have a “yes”, there is no way that you’re going to talk your way out of the sale that you have already made.
It is important to keep in mind that buyers often fall into the role of “order taker” as they too feel anxiety around making buying decisions. If you do not position your products and services correctly, your likelihood of losing a customer after a short time because you didn’t position how your company can completely solve their problem goes up dramatically.
"A Challenger is defined by the ability to do three things: teach, tailor, and take control." -The Challenger Sale
So how do how do you position the BEST solution for your clients?
- Be diligent with your questions
o Find the reason behind the reason they are looking to buy
- Sell on VALUE
o Be clear about your value proposition, and focus on the end result for your clients not on your products
o People buy on EMOTION and justify it with logic, so make sure you understand their why, and position your product/service as the vehicle to create the desired end result
- Understand your product ladder
o Be clear on the features and benefits of your premium products and how they will enhance your clients experience and results
We have discussed in our past posts how to create raving fans.
Even once you have cultivated these raving relationships, your clients situations and needs will be constantly changing. You may find that as one of their contracts come to a close that they are no longer in need of that product/service or that their financial situation has changed in a way that it is not longer within their budget. This is where down-selling can be a great option to keep clients enrolled with your organization.
What are some down-selling strategies?
- Have a low-cost entry offering that you can introduce to current clients from a different product line. You can then up-sell them into the premium offerings of that line over time
- If you have a regular meeting or service agreement, have a less frequent, less expensive option. Then when their situation changes, you can simply dial back their agreement but still keep them enrolled with your company.
Once you have a quality client (see https://acadia.actioncoach.com/4-weed-out-bad-clients-and-cater-to-the-best/ ) enrolled with your company, make sure that they don’t leave to use a competitor because you don’t have an offer that will suits their needs!
P.S. If you don’t have or have limited product/service offerings you can get creative to create those up, down and cross-sell opportunities!
Book a call with us or attend one of our webinars if you want to explore this concept further!
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